Air Force Halts $355M Aircraft Contract During Protest

Law360, New York (January 5, 2012, 3:46 PM EST) -- The U.S. Air Force stopped work Wednesday on a $355 million contract for light support aircraft awarded to Sierra Nevada Corp. and Brazil-based Embraer SA, pending the outcome of a bid protest by a contractor that claims the Air Force knocked it out of the running for no reason.

In a notice filed in the U.S. Court of Federal Claims, government lawyers announced that the Air Force would voluntarily stay the contract pending a decision on the bid protest, filed Dec. 27 by Hawker Beechcraft Defense...